Non-resident tax in Palma de Mallorca

Palma is the only Balearic capital that is also a major second-home destination in its own right. Foreign owners hold renovated flats in the Old Town palaces, townhouses in Santa Catalina, the former fishermen's quarter turned restaurant district, converted cottages along the seafront in Portixol, villas beside the golf course in Son Vida, and apartments in Cala Major near the Marivent palace. Owners in the Balearic Islands come above all from Germany, United Kingdom, Italy, Sweden, and Palma's airport, Palma (PMI), is among the busiest in Spain, which makes a weekend visit from London, Dublin, Stockholm or Amsterdam realistic.

The city has 434,786 inhabitants and a permanent housing shortage, which is why the council took a hard line on tourist lets years before most Spanish cities. In the Balearic Islands foreigners account for 29.9% of home purchases, one of the highest shares in Spain. Prices average €5,513/m² (September 2026). For the imputed income tax, however, the relevant figure is the cadastral value, and Palma's were revised more recently than most.

Every non-resident who owns a home in Spain without letting it pays tax on an imputed income, a fixed percentage of the cadastral value. In Palma that percentage is 1.1%, the reduced coefficient, because the municipality's general collective valuation took effect in 2013, after the 1 January 2012 threshold that the rule for tax years 2023 to 2026 uses. Most other Mallorcan municipalities, Calvià and Andratx among them, were revised earlier and apply 2%, so on the same cadastral value a Palma owner pays a little more than half.

For an average Palma home with a cadastral value of €77,300 (Catastro statistics 2026), the imputed income is €77,300 × 1.1%. A resident of the EU or EEA pays 19% of it, €161.56 for a full year of sole ownership; a resident of the United Kingdom, Switzerland, the United States or any other non-EU state pays 24%, €204.07, with no deductions. The 2013 revision means cadastral values track the real spread of the market: a Son Vida villa or an Old Town penthouse may be valued at many times the average, a Cala Major studio at a fraction of it. Your figure is the valor catastral on your IBI bill.

The imputed income of year 2025 is declared on the Modelo 210 during the following calendar year; from the 2026 income year the filing window becomes 1 April – 31 December of the following year (Orden HAC/623/2026). UK residents have been in the 24% group since Brexit and usually also report the Palma property on the foreign pages of their Self Assessment, with Foreign Tax Credit Relief for the Spanish tax; Irish residents stay at 19% as EU citizens.

The IBI for all Palma properties is collected by Agència Tributària de les Illes Balears (ATIB) - collects Palma's IBI, IAE and vado fee by delegation of the Ajuntament de Palma. The voluntary payment period is normally 15 September – 1 December. The urban rate is fixed each year by the city council; Agència Tributària de les Illes Balears (ATIB) - collects Palma's IBI, IAE and vado fee by delegation of the Ajuntament de Palma can confirm it.

The IBI bill is where you find the cadastral reference and the cadastral value that feed the Modelo 210, and in Palma, where values were revised recently, the bill is also a reasonable indicator of how your flat compares with the municipal average. A direct debit keeps you clear of the surcharges that follow a missed payment while you are abroad. Duplicates are available on the collector's sede electrónica with a digital certificate, and Fiscasa can retrieve the cadastral data from the address if you have no bill to hand.

Palma has banned tourist lets in multi-family buildings since 2018, so a flat in the Old Town, Santa Catalina or Cala Major cannot legally be advertised for holiday stays. Detached houses may qualify, but only with a licence that comes with "plazas" (bed places) bought from the limited regional pool created by Ley 8/2012 as amended in 2017, in zones where the Consell de Mallorca allows them, and a moratorium on new plazas has been in force since 2022. Unlicensed advertising is heavily fined, and since 1 July 2025 every advert must also carry the national rental register number (Registro Único de Arrendamientos). Rules change often; check the current regulation before planning any letting.

Lets that remain possible, such as a year-long contract or a seasonal let to a professional, are taxed like anywhere in Spain: the rent is declared on a separate Modelo 210, grouped annually since 2024 and, from the 2026 income year, filed between 1 and 20 April of the following year. EU and EEA residents deduct pro rata expenses and pay 19% on the net; others pay 24% on the gross. Imputed income then covers only the days the home was not let.

• Year of purchase: the imputed income starts the day after the deed and is prorated; the first return is filed the following year.
• Couples and co-owners: one Modelo 210 per owner, each for their share and with their own NIE.
• Long-term tenants: keep the contract; it proves the days let and removes them from the imputed income.
• Unfiled years: Spain may claim four years. Voluntary regularisation costs 1% plus 1% per full month of delay, 15% plus interest after a year, less 25% when paid within the notified deadline.
• Payment from abroad: a transfer from a foreign account is accepted and EU/EEA residents need no fiscal representative. US owners pay 24% and may need to report a Spanish account on the FBAR or Form 8938.
• Resale: the buyer withholds 3% of the price (Modelo 211); a complete set of filed Modelo 210 forms speeds up the refund of any excess.